Ho Chi Minh City plans fund to boost social housing growth
(NLĐO) – Ho Chi Minh City (HCMC) encourages the establishment of investment funds, trust funds, and joint ventures to implement social housing projects.
The city’s Party Committee has issued a plan to implement Directive No. 34-CT/TW of the Party Secretariat on strengthening Party's leadership in developing social housing under new circumstances.
Accordingly, HCMC aims to meet the social housing development targets by 2030 in line with the Prime Minister’s Project on “Investing in the construction of at least one million social housing units for low-income earners and industrial park workers for the 2021–2030 period,” as outlined in Decision No. 338/QĐ-TTg dated April 3, 2023.
This effort will also align with the city’s Housing Development Program, adjusted to reflect the new realities following the proposed merger of Binh Duong and Ba Ria–Vung Tau provinces with HCMC.
The city encourages the establishment of investment funds, real estate investment trusts (REITs), and joint venture or partnership models to implement social housing projects effectively.
A Social Housing Complex in Ho Chi Minh City
The Ho Chi Minh City Department of Construction has been assigned to advise and submit to the City People’s Committee a proposal for the competent authorities to consider establishing a Steering Committee on Social Housing Development and the implementation of housing support policies for policy beneficiaries.
The Department is also tasked with reviewing and evaluating the decentralization and delegation of authority in social housing development; reviewing and issuing, or submitting to competent authorities for consideration, amendments, supplements, replacements, annulments, or new issuance of regulations and policy mechanisms in line with the laws on housing and real estate business.
The Ho Chi Minh City Party Committee has requested that this task be completed within 2025.
The department is also directed to review urban planning to allocate independent social housing projects or integrate them into commercial housing developments in locations with convenient transport links to industrial centers.
These projects must ensure comprehensive technical and social infrastructure. Furthermore, the department will review and update urban and industrial park planning to secure sufficient land for social housing, including accommodations for workers and armed forces personnel.
The department is also tasked with exploring diverse social housing models and proposing policies for purchasing, renting, or rent-to-own arrangements tailored to the financial capacities of low-income urban residents, workers, students, and members of armed forces.
The Ho Chi Minh City Department of Finance is assigned to propose incorporating social housing development targets into the city’s five-year and annual socio-economic development plans.
It is also urged to expedite studies and propose the establishment of a social housing development fund or a suitable financial institution to ensure long-term, sustainable growth in this sector.
The city aims to diversify funding sources for social housing, including local development investment funds and foreign capital.
Ho Chi Minh City encourages the formation of investment funds, trust funds, and joint ventures or partnerships to implement social housing projects. The city will review and innovate preferential loan programs for individuals and households to purchase, rent, or rent-to-own social housing, in line with social housing policies. Efforts will also focus on resolving bottlenecks to effectively roll out social housing loan support programs.
The Ho Chi Minh City Party Committee has requested that the Department of Finance complete these tasks within 2025.